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CASBAA projects 45% growth of C&S industry in Asia-Pacific by 2010

06-December-2002
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CASBAA projects 45% growth of C&S industry in Asia-Pacific by 2010

The Cable & Satellite Broadcasting Association of Asia (CASBAA) has projected 45% industry growth for the Asia-Pacific cable and satellite industry by 2010. It further claims that the industry is set to hit 228 million subscribers and Digital TV is going to be a key growth engine.

CASBAA revealed the latest figures and forecasts for Asia-Pacific's pay-TV industry in its Convention 2002 at Singapore. The figures can be found in its newly launched CASBAA Asia Cable & Satellite Guide 2003.

CASBAA is region's leading non-profit trade organization for the promotion of multi-channel television and data transmission via cable and satellite networks. It represents some 120 Asia-based corporations, which in turn serve more than 3 billion people. Its member organizations include AOL Time Warner, Vivendi Universal, MTV, Discovery, ESPN STAR Sports, Sony Pictures Television, BBC World, Bloomberg Television, STAR TV, AsiaSat and Turner International.

According to CASBAA, the cable and satellite (C&S) industry in Asia Pacific is set to grow from the current 157 million C&S subscribers to over 228 million subscribers in the next eight years, registering a 45% growth rate from 2002 to 2010.

China and India will continue to be the key markets in 2010, with 128 million subscribers in China and 53.35 million subscribers in India.

Digital TV has been singled out as the hottest industry development for the next decade. CASBAA forecasts that there will be a dramatic growth in the number of households with digital TV from the existing 7.9 million homes in 2002 to 166 million by 2010.

"The long-held potential of the region is now coming to fruition. Digital television will herald a boom for technology manufacturers, cable and satellite systems operators, programmers and advertisers. Furthermore, digital technology will help to combat piracy, by increasing the complexity and costs of decoding pay-TV signals," said Simon Twiston Davies, CEO of CASBAA.

"Digital cable services were only just beginning to be deployed in 2002 in Asia Pacific," said Robert Wilson, CASBAA Director for Media & Research. " But the trend is unstoppable. Digital TV will create greater choice and quality, leading to an exponential increase in subscription TV revenues in the region by 2010."

The CASBAA report also states that the total Asia-Pacific subscription TV revenues are forecast to rise by more than 58%, from US$13 billion in 2002 to almost US$31 billion in 2010. Japan, China, India and South Korea will account for 81% of the total subscription TV revenues in 2010.

By 2010, cable will bring in more than two-thirds of subscription TV revenues, with Direct-to-Home (DTH) satellite broadcast accounting for 19%, and telephony-based services accounting for 12%.

This immense potential of subscription TV revenues is a result of the huge growth of TV households expected in the region. There are currently 450 million TV households in Asia Pacific, and the figure is set to hit 555 million TV households by 2010.

Of the total TV households in 2010, 53% of the households are expected to subscribe to either cable services (both analogue and digital), DTH packages, telephony-based services and Digital Terrestrial TV (DTT) signals.

This leaves 47% of TV households that will only receive analogue terrestrial signals, demonstrating the growth potential of Asian subscription and digital systems even after 2010.

"The increasing penetration of pay-TV services will add dramatically to the attraction of cable and satellite services as an advertising vehicle. Today, we see 15% of the TV ad spend coming our way. There will soon be a major shift in the allocation of this ad spend with pay-TV taking a larger proportion. This will happen as terrestrial networks delivered by traditional telephone networks and satellite platforms meet us on an even playing field. The best is yet to come," said Davies.

The report has been jointly developed by CASBAA with research specialists, the Informa Media Group. It is sponsored by PricewaterhouseCoopers and co-sponsored by Nielsen Media Research, which assisted with provision of the data.

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